Honeywell Aerospace has secured approximately $15 billion of new business wins on an estimated lifetime-value basis so far in 2026, giving the newly independent aerospace and defense company significant commercial momentum as its backlog reaches $18.2 billion.
Among the largest awards is an agreement involving IndiGo’s order for 810 Airbus A320neo-family aircraft. IndiGo selected Honeywell Aerospace’s flagship avionics and power systems for the aircraft, representing the largest new-aircraft-selectable equipment win in Honeywell Aerospace’s history.
The company also announced that Aeromexico intends to deploy its Surface Alerts, or SURF-A, runway safety technology across a fleet of more than 100 Boeing 737NG and 737 MAX aircraft. Separately, Civitanavi Systems’ ARGO 4000 inertial measurement technology has become a preferred solution for European manufacturers integrating guidance capabilities into missile programs, unmanned platforms, maritime vessels and land vehicles.
Honeywell Aerospace’s backlog increased 9% year-over-year to approximately $18.2 billion at the end of Q2, while trailing 12-month orders increased 8%, led by continued strength in Defense and Space. Second-quarter sales increased 5% to $4.52 billion.
Commercial Aftermarket remained the company’s largest end market, with sales increasing 8% to $2.03 billion. Commercial Original Equipment sales increased 6% to $679 million, while Defense and Space revenue increased 3% to $1.82 billion.
Honeywell Aerospace completed its spin-off from Honeywell International on June 29. As it begins operating independently, the company is taking a series of steps aimed at addressing supply-chain constraints that limited output during Q2.
Honeywell Aerospace is qualifying more than 50 new suppliers and expects to qualify another 50 during the second half. Supplier tooling investment is expected to increase 20% in the second half versus the first half and double between 2025 and 2027, with approximately 70% of that spending directed toward castings. The company also expects to increase the number of multi-sourced parts by more than 15% this year.
Supply constraints prompted Honeywell Aerospace to lower its full-year organic growth outlook to 4% to 5% from 7% to 9%. Pro forma standalone adjusted EBIT guidance was reduced to $4.35 billion to $4.45 billion from $4.65 billion to $4.75 billion, although second-half free cash flow guidance remains $1 billion to $1.5 billion.
KEY QUOTES:
“As we establish Honeywell Aerospace as a standalone company, we will harness our increased financial flexibility.”
Jim Currier, Chief Executive Officer of Honeywell Aerospace
